At this time, Odeum does not collect Sales Tax on any transactions. It is up to the Publisher to consider tax and VAT obligations. If you’ve determined that you need to collect sales tax, you should consider accounting for that tax when you price your subscription plans. Buyers are always charged the amount that you set so taxes will need to be netted out of that gross price.
As an example, If you set your product price at $10, your buyers will always pay $10, and you will receive the proceeds, minus Odeum's fees, for every sale. In a US state without taxes, the sale price is $10. In a US state with a 20% tax rate, you should set aside $2 for later remittance based on a pre-tax price of $8.
While Odeum does not collect tax for you, we can provide a geographic breakdown of your sales based on the state of purchase (in the U.S.) and country of purchase (outside the U.S.).
Every month, Odeum delivers the money from your sales to your bank account. At the end of the year (or more frequently depending on your tax professional's advice), you should send the money that was collected as sales tax to your state's filing office. This process is known as remittance. You can pay the taxes collected directly to each state, or use a tax remittal service.
Future changes
Odeum is currently evaluating the future requirements for tax and VAT obligations and expects that a change may occur in the near future where taxes will be automatically charged, captured, and remitted by Odeum. Until such date of this change, it is the responsibility of the publisher to handle taxes as stated.